Reddit (NYSE:RDDT) Rating Lowered to “Hold” at Wall Street Zen

Reddit (NYSE:RDDT) was downgraded by Wall Street Zen from a “buy” rating to a “hold” rating in a report issued on Saturday.

RDDT has been the subject of several other reports. Cantor Fitzgerald began coverage on Reddit in a research note on Thursday. They set a “neutral” rating and a $240.00 target price for the company. Oppenheimer lifted their price objective on shares of Reddit from $215.00 to $300.00 and gave the stock an “outperform” rating in a research report on Tuesday, September 16th. Morgan Stanley reissued an “overweight” rating and issued a $250.00 price objective on shares of Reddit in a research report on Friday, October 31st. Raymond James Financial reaffirmed a “strong-buy” rating and set a $250.00 target price (up previously from $225.00) on shares of Reddit in a report on Monday, October 20th. Finally, Citigroup increased their price target on shares of Reddit from $250.00 to $265.00 and gave the company a “buy” rating in a report on Monday, November 3rd. Two analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, eleven have given a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, Reddit has an average rating of “Moderate Buy” and an average price target of $232.58.

Reddit Trading Down 3.6%

NYSE RDDT opened at $244.71 on Friday. The firm has a market capitalization of $46.37 billion, a P/E ratio of 140.64, a price-to-earnings-growth ratio of 1.64 and a beta of 2.17. The firm’s fifty day moving average price is $218.41 and its two-hundred day moving average price is $207.79. Reddit has a 1 year low of $79.75 and a 1 year high of $282.95.

Reddit (NYSE:RDDT) last released its quarterly earnings data on Thursday, October 30th. The company reported $0.80 earnings per share for the quarter, topping the consensus estimate of $0.50 by $0.30. Reddit had a net margin of 18.33% and a return on equity of 14.94%. The company had revenue of $584.91 million for the quarter, compared to analyst estimates of $546.65 million. During the same period in the previous year, the business earned $0.16 EPS. Reddit’s revenue for the quarter was up 67.9% compared to the same quarter last year. On average, research analysts anticipate that Reddit will post 1.12 EPS for the current fiscal year.

Insider Transactions at Reddit

In other Reddit news, insider Benjamin Seong Lee sold 55,005 shares of Reddit stock in a transaction dated Tuesday, December 16th. The stock was sold at an average price of $221.21, for a total transaction of $12,167,656.05. Following the completion of the sale, the insider owned 62,608 shares of the company’s stock, valued at $13,849,515.68. The trade was a 46.77% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, COO Jennifer L. Wong sold 63,427 shares of the company’s stock in a transaction dated Monday, November 24th. The stock was sold at an average price of $192.72, for a total value of $12,223,651.44. Following the completion of the transaction, the chief operating officer owned 1,184,528 shares of the company’s stock, valued at $228,282,236.16. The trade was a 5.08% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 505,496 shares of company stock worth $108,036,192 in the last three months. Insiders own 34.25% of the company’s stock.

Institutional Trading of Reddit

A number of institutional investors have recently modified their holdings of RDDT. Raiffeisen Bank International AG bought a new position in Reddit in the third quarter valued at about $25,000. GW&K Investment Management LLC bought a new position in shares of Reddit in the 3rd quarter worth approximately $30,000. Cornerstone Planning Group LLC boosted its holdings in shares of Reddit by 13,500.0% in the third quarter. Cornerstone Planning Group LLC now owns 136 shares of the company’s stock worth $31,000 after buying an additional 135 shares during the last quarter. Financial Perspectives Inc purchased a new position in shares of Reddit in the second quarter worth approximately $34,000. Finally, Noble Wealth Management PBC purchased a new stake in Reddit during the fourth quarter valued at approximately $34,000.

More Reddit News

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Third‑party product coverage widening Reddit’s visibility — Ahrefs added Reddit to its Brand Radar tracking (now covers YouTube, TikTok and Reddit), which can increase marketer awareness and make Reddit mentions more actionable for advertisers. This is a modest positive for ad monetization and brand measurement. Ahrefs Adds YouTube and Reddit Tracking to Brand Radar
• Neutral Sentiment: Cantor Fitzgerald initiated coverage with a “neutral” rating and a $240 price target (slightly below current levels). New coverage and a near‑term price target below the market can limit upside but doesn’t signal a change to Reddit’s long‑term growth story; it may contribute to cautious trader positioning. Analyst Coverage Note
• Negative Sentiment: Insider selling by CFO Andrew Vollero — filings show sales on Jan 6 (8,413 shares at ~$252.72) and Jan 7 (500 shares at ~$260.06). While the CFO still holds ~255k shares (valued in the tens of millions), the high‑profile insider sales — particularly the larger Jan 6 block — can send a negative near‑term signal to traders and may weigh on sentiment. Insider Selling: Reddit CFO Sells Shares
• Negative Sentiment: Reputational/ content‑risk coverage — a New York Times podcast discussed misuse of AI tools to push abusive/political content (context includes platforms and moderation challenges). Any spotlight on content or AI‑driven moderation failures can raise advertiser and regulatory concerns, pressuring sentiment until moderation/AI controls are clarified. Grok’s Undressing Scandal + Claude Code Capers

Reddit Company Profile

Reddit is an online social news aggregation, discussion and content-sharing platform organized around user-created communities called “subreddits,” each focused on a particular topic or interest. Registered users submit links, text posts, images and video, and community members vote and comment to surface popular content. The site is accessed via its web platform and mobile apps for iOS and Android, and it supports live events such as Ask Me Anything (AMA) sessions and community-driven discussions.

Founded in 2005 by Steve Huffman and Alexis Ohanian, Reddit is headquartered in San Francisco and serves a global audience with particularly large user bases in the United States and other English-speaking markets.